Purchase of premises and proposed re-organisation

Lighthouse Group plc

("Lighthouse" or the "Group")

Purchase of long-leasehold premises and

confirmation of proposed re-organisation of operating facilities

Lighthouse Group plc (AIM:LGT) is pleased to announce that it has completed the purchase of the long-leasehold interest of two adjacent units in Woodingdean, near Brighton, where Lighthouse Financial Advice Limited ("LFA") the Group's wholly-owned affinity based national advisory business, is based, for a total sum of £1.066 million, inclusive of VAT, stamp duty reserve tax and transactional costs. The cost has been met out of existing cash resources together with a commercial mortgage from RBS NatWest, the Group's banker, for £507,000. The long-leasehold interest was acquired from St Mowden Developments Limited.

Further to the announcement made on 5 September 2013, the Group announces that it has completed the collective consultations concerning the proposal to close its Exeter office and relocate the functions undertaken there to the Group's two other principal operating locations in Stockport and Woodingdean. The collective consultations did not result in any new or material arguments being made against the closure proposal and the circumstances which gave rise to the proposal remain unchanged. Accordingly the Board has now concluded that the proposal be implemented with all functions relocated and the Exeter office fully vacated by 31 March 2014.

The newly acquired premises in Woodingdean, which comprise the whole of the existing building currently occupied as to 50 per cent. by LFA, will be sufficient to absorb the income collection and reconciliation and finance functions currently undertaken at Exeter. The larger premises will also accommodate the growth plans currently underway for LFA and the development of a dedicated training centre for the Group's advisers and staff.

The proposal is expected to deliver operational efficiency gains once the new functions are fully embedded from mid 2014 onwards. Following the implementation of the proposal the Company will be in a position to provide further detail on the likely quantum of the operational efficiency gains and at such time will provide a further update. Consultations continue with those individuals currently employed at Exeter who have expressed an interest in relocating to either Stockport or Woodingdean, as appropriate.

Malcolm Streatfield, Chief Executive Officer of Lighthouse, commented: "The Board is grateful to all concerned for having fully committed to and participated in what has been an extremely thorough and professional process. Many points were raised by those employees affected by the proposal, through their appointed employee representatives, and were given due consideration. However no compelling arguments or new circumstances were raised or arose during that process and the Board has therefore concluded that the original proposal should be confirmed.

"The Group's focus has now shifted to the implementation phase of the project and we are delighted to have completed the purchase of the long-leasehold interest in the Group's existing premises in Woodingdean, near Brighton, together with the adjacent (and currently empty) part of the same building.

"The premises will provide a modern and integrated base for the Group's operations and in particular will enable the delivery of the substantial growth plans that are underway within LFA, as well as enabling the Group to establish a state of the art training academy for the benefit of the Group's advisers and staff."

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